The Markets Want a Jobs Plan!

September 7th, 2011 at 5:08 pm

I’m not one of those guys who cites the stock market to prove anything either way, but I do find it interesting that the market climbed today on news of a pretty robust jobs plan (along with a German court’s decision that Germany could keep making emergency loans).

From MarketWatch:

“U.S. stocks gained Wednesday for the first session in four on a report President Barack Obama will propose a $300 billion package to boost jobs and after Germany’s top court ruled it was legal for the country to take part in regional rescue plans.”

Here’s a picture of the market today at around 3 and here’s another one of the Dow Jones Index, with a line when the stimulus was passed in Feb 2009.

Source: FRED

Again, the hyper-skittish stock market is a barometer of Buddha-knows-what.  But the markets–not wild-eyed Keynesian radicals–want growth policies (and loans to undercaptilized European banks), and the in this case, they’re right!

Earth to Congress…come in, Congress!  Congress…are you there!!??

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5 comments in reply to "The Markets Want a Jobs Plan!"

  1. foosion says:

    >>But the markets want growth policies (and debt reduction)>>

    The markets clearly want growth.

    I don’t see any evidence they want debt reduction. There is incredible demand for US treasuries. That’s evidence they want to buy more treasuries. In other words, they want more debt.

    Given the very low cost of production (10 year real rates approximate zero), a rational government would produce more treasuries to meet the demand.

  2. John Kurman says:

    I would like your last line to be a bit more specific:

    “Earth to the 112th Do-Nothing Republican Congress”.

    Thank you.

  3. general c. san desist says:

    …after watching PBS Frontline last night, I have seen the enemy…& it is us, as Pogo would surmise.

    Spine chilling stuff…no wonder the Conservative Brotherhood wants control back. At what cost freedom, well, apparently we’ll never know.

  4. PeonInChief says:

    What’s interesting about the economic powers what be is that they aren’t sure what they want. On the one hand, they take the position of my cats–everything here is mine–but they also have some vague recognition that without jobs and income, the whole thing just wobbles along, with the remote possibility of a new crash in a dark corner of the room. They’re just hoping that there’s some magical fix and that Dumbledore will show up with his wand.